GE Unit May Have Aided Petters' Ponzi Scheme, Judge Finds

By Kat Greene

Law360, Los Angeles (August 23, 2013, 10:08 PM ET) -- A Florida investment firm’s suit against General Electric Capital Corp. was kept alive by a U.S. Bankruptcy judge who ruled Friday there was enough evidence to support the investors’ claim that GECC participated in the third-largest Ponzi scheme in history.

In a decision handed down Friday, U.S. Bankruptcy Judge Paul G. Hyman tossed eight of Palm Beach Finance Partners LP’s nine claims against GECC but kept alive a claim that the lender knew of and perhaps committed at least one overt act that furthered the $3.6...